Assessment of motivational patterns of women entrepreneurs in ngo sector and their impact on economic development case Study

Table 51: Percentage (%) of Investment that Represent Profit and Income before Starting the Business

Percentage (%) of Investment that Represent Profit			Percentage (%) of Investment that Represent Income
Variables	Freq n=422	Per. (%)	Variables	Freq n=422	Per (%)
Less 10%	26	7	Less 10%	190	42
10%- 20%	44	11	10%- 20%	111	24
21%- 30%	132	33	21%- 30%	57	12
31%- 40%	147	35	31%- 40%	28	5
41% and Above	73	14	41% and Above	36	7
Total	422	100	Total	422	100

Source: Field Survey, 2007
The estimates of initial percentage (%) of investment representing annual profit of the business and the current percentage (%) of investment representing annual profit are cross tabulated and represented in the Figure below, The percentage of investment representing annual profit increased when it was less than ten percent (10%), decreased at 10%, it stabilized until it got to 30% when it dropped again afterwards. According to the plotted graph, the profit at start tends to fall marginally at 200 with a peak at forty percent (40%) follow by marginally increases. Entrepreneurs’ current annual profit also increases sharply but fell at three hundred (300) and latter experience a rise at forty percentage (40%). Graphically this can be represented in a graph as below.
F

igure 27: Percentage of Investment Representing Annual Profit at the Start and Current of Business

10-20%

>40%

>20-30%

>30-40%


<10%

300

500

400

200

Counts


Estimated Value of Initial Annual Sales and Current Total Sales

Table 52 below shows that 270(64%) of the respondents’ estimated value of initial sales stood at an amount below N50,000, 81(19%) of them had their initial sales value to be N50,999-N100,000, 34(8%) of them had their initial annual sales to be between N100,999-N150,000, 24(6%) of them had their initial sales value to be N150,999-N200,000 while 13(3) of them had their initial sale value to be N200,999 and above. Also looking at their present sales value it was discovered that the amount has tremendously increased. Twenty two or (5%) of the respondents’ current total sales is below N10m, 25(6%) of them had their sales value to be N10,999,999-N20,000,000, 253(60%) of them have their current sales to be N20,000,999-30,000,000, 81(19%) of them have their sales value to be between N30,000,999-N40,000,000 while 41(10%) of them agreed that their current sales value is N40,000,999 and above.

Total_Sales'>Table 52: Estimated Value of Initial Annual Sales and Current Total Sales

Initial Annual Sales			Current Total Sales
Variables	Freq n=422	Per. (%)	Variables	Freq n=422	Per (%)
Below N50,000	270	64	Below N10m	22	5
N50,999 – N100,000	81	19	N10,999,999-N20,000,000	25	6
N100,999 – N150,000	34	8	N20, 999, 999 – N30,000,000	253	60
N150,999 – N200,000	24	6	N30,999,999 – N40, 000,000	81	19
N200,999 and Above	13	3	N40, 000,999 and Above	41	10
Total	422	100	Total	422	100

Source: Field Survey, 2007
Source of Initial Capital

Table 53 below shows that 258(61%) of the respondents raised their initial capital through savings, 23(6%) of the respondents agreed that they raised their initial capital through bank loan, 48(11%) of the respondents raised their initial capital by borrowing from their friends, 73(17%) of them raised initial capital through their family member s and relations, while 20(5%) of them raised their initial capital through other unspecified means.

Table 53: Source of Initial Capital

Variables	Freq n=422	Per. (%)
Savings	258	61
Bank loan	23	6
Borrowing from friends	48	11
Borrowing from relations	73	17
Others Means	20	5
Total	422	100

Source: Field Survey, 2007
Factors that Motivated Women to go into Entrepreneurship

Table 54 gives the descriptive statistics of one of the main variables used in this study. Factors that motivate women to start and grow their business were observed and analyzed. Five factors were identified; family influence, educational attainment, experience, personal dissatisfaction and role modeling. Sub-factors are here presented under each of the main factors that were measured.

Family Influence

Family influence as a factor was equally investigated to determine whether the parents of the entrepreneurs were self-employed or not. The researcher investigated the position of the entrepreneurs in the family and other issues as factors that motivate women to start and grow their business. It was discovered that 193 respondents indicated that they were first child of their parents, representing 45.73%, while 229 (54.26%) said ‘no’ to the question. However, looking at these figures, one can deduce that the percentage of being ‘the first child’ as an entrepreneur is high considering other options such as ‘being sacked from someone’s place of work’, ‘being the only child of their parents’, ‘participating in a family business when they were younger’ and education background. Being the only child as motivation for women to start and grow their businesses was cited by 170 participants representing 40.28% while majority of them, 252 (59.72%) reported that they were not their parents’ only child. One hundred and twenty or 28.43% of the respondents accepted the fact that their parents were originally self employed. Being the only child, according to this finding was not likely to be the reason why women start and grow their businesses.

Majority of the entrepreneurs, 302 (71.56%) said ‘no’ to the question ‘if their parents were self employed’ while 120 representing 28.43% indicated ‘yes’. Considering the question ‘if their business relate to their family business’, 200 (47.39%) of the respondents agreed that the type of business they are into is peculiar to their family business while 222 (52.61%) of them said ‘no’ to the question. In response to the question ‘whether a business is currently running in their family’, majority 229 (54.26%) said ‘no’ while 193 representing 45.73% said ‘yes’ to the question. Majority of the women entrepreneurs 322 (75.83%) said ‘no’ to the question whether they participated in their family business when they were younger while 102 indicated ‘yes’, this represents 124.17%. Majority of the women entrepreneurs under this study, 353 (83.65%) started business because they wanted to be closer to their families while 69 of them indicated ‘no’ to the question and this represented 16.35% of the respondents.

Education/Training

Education/training as a factor revealed that majority of the entrepreneurs, 293 (69.43%) of the respondents were motivated to start and grow their business as a result of training they received rather than their educational background which is 200 (47.39%). This implies that training is very important to entrepreneurial venturing; meaning that irrespective of someone’s educational background, through training, one can acquire the required skills for the success of a business.

Experience

Most of the respondents, about 353 (83.65%) had worked for someone before starting their own businesses while 69 or 16.35% had not had working experience before going into entrepreneurship. Also, many of them, about 303 (71.80%) of them started their businesses immediately they stopped working for someone. This implies that working experience is an important factor that motivates women entrepreneurs into starting and growing their businesses.

Personal Dissatisfaction

Surprisingly, majority of the women entrepreneurs about 353 (83.65 %) of them were dissatisfied working for men. Looking at the circumstances that made the respondents to start their business, 193 (45.73%) of them agreed that they started their entrepreneurial venture because they were dissatisfied with their former place of work, while 229 (54.26%) of them disagreed that they went into business because of dissatisfaction with their former place of work.

Role Model

Role modeling is also another factor that motivates women entrepreneurs. 338 (80.09%) of the women entrepreneurs were encouraged by a role model while 84 (19.91%) were not.

Finance

Table 54 shows that 353 (83.65%) of the respondents agreed that they went into business mainly because they wanted extra income while 69 (16.35%) of them disagreed that they entered into business because of money. Also 303 (71.80%) agreed that they started their business because of their dissatisfaction with their financial status, while 119 (28.20%) disagreed that they went into business because ‘they were dissatisfied with their former financial status’.

Table 54: Statistics on Motivational Factors, Commencement and Business Life Cycle

ITEMS	FREQ	YES	%	NO	%
Are your parents self employed?	422	120	28.43	302	71.56
Is the business you are currently running your family business?	422	193	45.73	229	54.26
Is this type of business peculiar to your family?	422	200	47.39	222	52.61
Did you participated in your family business when you were younger?	422	102	24.17	320	75.83
Did you start your business because you wanted to be closer to your family?	422	353	83.65	69	16.35
Are you the first in your nuclear family?	422	193	45.73	229	54.26
Are you the only child?	422	170	40.28	252	59.72
Does your educational background relate to your Business?	422	200	47.39	222	52.61
Did you received training related to the business before you started your own?	422	293	69.43	129	30.57
10. Have you worked for someone before?	422	353	83.65	69	16.35
Did you start this business immediately you stopped working for someone?	422	303	71.80	119	28.20
12. Is your former boss a man?	422	353	83.65	69	16.35
13. Were you dissatisfied with your former place of work?	422	193	45.73	229	54.26
Is it your desire to earn more or extra income that pushed you into	422	353	83.65	69	16.35
15. Were you sacked from your former place of work?	422	120	45.73	302	54.26
16. Did you start this business because of dissatisfaction with your former financial status	422	303	71.80	119	28.20
17. Were you encouraged by a role model?	422	338	80.09	84	19.91

Source: Field Survey, 2007
Using Mansor’s (2005) motivational factors classification, the above items can further be

grouped as family influence, pshychological (personal dissatisfaction and experience), financial and environmental factors (education/training and role model). This forms the basis for the classification of this study’s independent variables used for the analysis of the hypotheses. In emphasizing the factors that motivate women into business, the information obtained from the instrument of the interview can be used to buttress this point more. The women entrepreneurs interviewed under this study were asked “what are the different factors that motivated you to go into business?”, Out of the 36 women entrepreneurs, 88% of them gave different reason(s) for their involvement in business. Some of these reasons include;

gaining freedom of decision and expression, it helps someone to be economically independent, it helps someone to be a leader, earning of income according to one’s performance, porousity of the labour market and economy, desire to have investment/fortune, strive for higher income of your own, public reputation that follows business ownership; frustrated as employee because of being under control, people pay less or no tax when they start business, you will be allowed to work within a unit that can be supervised from the beginning, opportunity to create something lasting and durable, ability to determine the amount of your income, possibility to work with your spouse/family member(s) etc. (Responses from women entrepreneurs interviewed).
Patterns of Motivation

Table 55 below gives the descriptive statistics of another main variable used in this study. Motivational patterns that exist across different business sectors where women entrepreneurs operate were observed and analyzed. Two patterns were identified as intrinsic and extrinsic motivation (Ryan and Deci, 2002; Brunstein and Maier, 2005).

Intrinsic and Extrinsic Factors

Intrinsic as a factor investigated the situation when the business activity and the business environment elicit motivation in an entrepreneur. Internal desires to run a business such as when women entrepreneurs engaged in business activities because it gives them pleasure and helps them to develop a particular skill. The extrinsic factors are external to the individual and unrelated to the business they do. These include money, prestige, family influence and so on. Table 55 shows that most women in agricultural sector 115 (27%), reported to be intrinsically motivated while women in manufacturing, trade and service sectors that were intrinsically motivated are 10(2.37%), 40(9.48%) and 40(9.48%) respectively. On the other hand, women in manufacturing, trade and service sectors reported to be extrinsically motivated are 42 (9.95%), 83(19.67%) and 79(18.72%) respectively. In all, majority of the women entrepreneurs were extrinsically motivated.

Table 55: Motivational Patterns Across Economic Sectors

SECTORS	Extrinsic	%	Intrinsic	%
Agriculture	115	27.25	13	3.08
Manufacturing	42	9.95	10	2.37
Trade	40	9.48	83	19.67
Service	40	9.48	79	18.72
Total	237	56.16	185	43.84

Source: Field Survey, 2007

Out of the total responses obtained from the depth interview, those who were intrinsically motivated into entrepreneurship were 54% while those who were extrinsically motivated were 36%. 8% of the 36 respondents did not see the question as relevant because according to them, it has been long they started business and it does not really matter what led them into business, but what matters is that they are presently doing something. The remaining 2% bluntly answered “No comment”.

There is a paradox of intrinsic and extrinsic motivation. Intrinsic motivation is far stronger a motivator than extrinsic motivation, yet external factors that include money, prestige and family influence were found to be associated with high performance across different business sectors where women entrepreneurs operate as shown in Table 56. Surprisingly, those that are extrinsically motivated had access to more initial capital than those who were intrinsically motivated and lower turnover across the sectors. As presented in the table below, the performance analysis shows that the mean figure for capital of those in agriculture who were extrinsically motivated (186,000) is higher than intrinsically motivated, while the turnover of those that were intrinsically motivated (245,000) is higher than those that were extrinsically motivated into business (242,000). In manufacturing sector, the extrinsic mean for the capital (918, 000) is higher than the intrinsic figure (626,000), the mean figure for the trade and service sector shows that extrinsic is higher than the intrinsic figure.